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5.59% seems to be the magic number!

Hi virgo, can you share with us which bank the birdie was talking about?

3 year swaps seemed to have bottomed out in June/July, but this may not rule out a "special deal" like the WBC 4.99% one a few years ago. If the bank that you're with doesn't come out with this low rate, or won't match it, then it's no good to you though. And if you try to re-finance to the...

Another problem with timing fixed rates is that the bank that you are with doesn't drop their rates that low, and if you try and threaten to re-finance to the most competitive lenders' rates they don't play ball, and if you do attempt to re-finance with another lender, the application doesn't go...

Am now fixing 85% of my IP debt at 5.59% for 3 years (3 IPs). Am also realising some capital gains by selling my other 2 IPs this year. See you again in 2015!

These sorts of rates would change the structure and nature of real estate investment in Australia completely. Woudn't hold out for this! May not be CF+ve if people to choose to buy rather than rent at such low rates.

BOQ 3 years at 5.55% pa is the new leader I think.

Thanks Marty. I also think that one shouldn't necessarily aim to wait for the absolute bottom to occur, eg. a 4.99% 3 year rate. Fixing some loans for a rate around 5.5% seems reasonably prudent. The risk being that these medium-term rates can quickly go the other way, and 5.5% today...

Interestingly in 2009, St George also put out the lowest 5 year rate at 5.74% at the time, just before fixed rates started to move up again.

3 year fixed rates are approaching historic lows (may go lower of course). 10 year Australian government bond yields are also at long-term lows. See RBA chart packs: http://www.rba.gov.au/chart-pack/interest-rates.html

Why is that?

I think the St George 5.59% and Suncorp 5.57% 3 year fixed rates are pretty good. I'm going to ask my current lender to match these rates, and if so will look at locking in 60-70% of my IP debt, and if rates move even lower than this will fix the rest then.

What does that mean TF, that future expectations are for rate increases or decreases?

NAB 3 yrs at 5.89% WBC 3 yrs at 5.89% CBA 3 yrs at 5.79%

VPlus 5.71% pa for 3 years. Greater Building Society 5.79% pa for 3 years.

ANZ 5.90% pa for 3 years NAB 5.99% pa for 3 years (Choice Package) WBC 5.99% pa for 3 years (Premier Advantage Package) CBA 5.99% pa for 3 years (Wealth Package) Please correct me if I am wrong on the above, but this is what the Big 4 bank websites say... First time they have all dropped...

Thanks for the update APK. Will be interesting to see if we get to mid 5 rates this time...

Ok now CBA and NAB have also increased their variable rates, let's see what happens with fixed rates... And what RBA does next month...

ANZ 5.99% for 3 years is a tempting fix if you're with ANZ... Could be as low as we go, or... could be a sucker punch... Will be interesting to see what WBC/NAB/CBA do with their fixed rates after this round of variable rate moves is over...

Hi Rolf, which website do you use to monitor 3 and 5 year bond rates?